Memphis Tennessee Bankruptcy Blog

As a resident of Tennessee, you have several options available if you decide to file for bankruptcy. Chapter 13 and Chapter 7 are the two most commonly talked about. However, before you file for bankruptcy, you should understand that not every debt you hold may be considered dischargeable.

FindLaw shows what typically happens after you file for Chapter 7 bankruptcy. The outcome largely depends on what debts you may be trying to rid yourself of. Chapter 7 bankruptcy allows you to discharge unsecured debt, which is a big help to a large number of people because things like credit card debt fall into this category.

When your finances start to spiral out of control, it can leave you feeling desperate. Some for-profit companies may prey on that desperation in an attempt to get you to sign on and utilize their services. Unfortunately, though, many debt settlement companies operate in an unethical manner, and they may be more about building their profits than helping you dig your way out of debt.

Just how does the debt settlement process work? In most cases, a debt settlement agency will tell you that it will negotiate with your creditors so that you have to pay only a small fraction of what you owe. There are numerous problems that can arise when you agree to work with a debt settlement agency, though, so it may serve you well to think twice before signing on with one. Also, you would be smart to be extremely wary of any company that makes what could potentially be false promises about eliminating or greatly reducing your debts. Why? In most cases, your creditors have no obligations to go along with any settlement terms such a company proposes. So, how can you identify a potential debt settlement scam so you can steer clear of it?

If you are one of the many people in Tennessee who are struggling to keep up with overwhelming debt payments, you likely have begun thinking about filing bankruptcy so as to get most of your debts discharged and consequently give yourself a fresh financial start. While bankruptcy can certainly accomplish these goals, you likely also worry about how it will impact your credit score and credit report.

No doubt exists but that your credit report and your credit score relate to each other. But while your credit report will reflect your Chapter 7 bankruptcy for 10 years or your Chapter 13 bankruptcy for at least seven years, you can raise your credit score considerably sooner than that. Credit.com reports that unfortunately, going through bankruptcy can drop your credit score by as much as 200 points. It will almost certainly lower your credit score by 130-150 points. For most people, this means that if their credit score was 680 before bankruptcy, it will take nearly five years before they can achieve that credit score again.

After a bankruptcy in Tennessee, a person may have mixed emotions. While it feels good to be out of debt and not get frequent and harassing calls from creditors, it may be overwhelming to think about what comes next.

There are numerous reasons people file bankruptcy. For some, a major and unexpected expense, such as medical bills from an accident, causes the need for bankruptcy. For others, however, bankruptcy occurred due to irresponsible spending habits. Now is the time to make changes in spending and begin to rebuild credit again. The following tips can help get people back on their feet faster.